CBP Anticipating Smooth March 31 ACE Transition, Still Considering Enforcement Approach

CBP is continuing to track stakeholder readiness for ACE transition, and expects its first mandatory use date on March 31 to proceed smoothly, said an agency spokeswoman that same day. The switch from a hard Feb. 28 deadline to phased approach “has alleviated concerns voiced by the trade community regarding readiness by staggering the integration of the PGAs, and allowing more time for all parties to fully transition to ACE,” she said.

The agency has been conducting “extensive outreach and support that is yielding results,” said the spokeswoman. It held three ACE production filing exercises in March to support filers who had not filed any entry summaries in ACE or filed any entries with National Highway Traffic Safety Administration or Animal and Plant Health Inspection Service Lacey Act data “to ensure they are prepared for the March 31 electronic filing requirements. CBP has been holding a daily call for the trade community to ask questions about ACE, and its port personnel have also been “reaching out directly with local filers to ensure readiness,” said the spokeswoman. The agency has also set up a war room that will remain open until April 8 to support filers affected by the March 31 transition, she said (see 1603290011).

As of March 31, CBP is requiring ACE filing for entry summary types 01, 03, 11, 23, 51 and 52 without PGA requirements, as well as both entries and entry summaries with only Animal and Plant Health Inspection Service Lacey Act and/or National Highway Traffic Safety Administration data for the same entry types (see 1602080042). Software developers and customs brokers are relatively optimistic the deadline will pass without serious problems, noting that many filers already submit these entry types and PGA data in ACE (see 1603300037).

CBP is assessing how the March 31 deadline progresses before it decides what kind of enforcement action it will take against filers who continue to file entries and entry summaries required in ACE in the legacy Automated Commercial System (ACS). The agency recently said it will first tell such filers to “cease and desist,” then “avail itself of any enforcement actions available” if ACS filing continues (see 1603250048). “We will be monitoring ACS transactions and consider what further actions we may wish to take after we assess progress further,” said the spokeswoman.

Regardless of the mandatory dates CBP has set, which include a second deadline on May 28, the agency is “strongly encouraging the trade community to NOW use ACE for all available entry and entry summary filings,” said the spokeswoman. Based on statistics released in February, CBP knows that “close to 70 percent of cargo release filers can file in ACE (they have filed and entry in ACE at least once) and more than 80 percent of entry summary filers can file in ACE (they have filed an entry summary in ACE at least once),” she said.